By Triana O'Keefe, editor – Australian Hotelier
An estimated $80 million worth of southeast Queensland pubs have hit the market in what Jones Lang LaSalle hospitality director John Musca describes as "favourable market conditions" for the state.
The Belvedere Hotel, The Full Moon and The Grand Central are among those listed by pub group Drinx, while Brisbane’s Stafford Tavern and the Sugarlands Tavern are being sold by AT Hotel Group.
Musca told TheShout he expects the Queensland market to experience a flurry of activity this year, especially in the first quarter, as competitive yield compression rates tighten the market.
“The Queensland market typically lags behind Sydney and Melbourne by as much as six to 12 months,” Musca said.
“We are starting to see interstate-based buyers in the Queensland market as good balance sheets and five year rates under five per cent command interest.”
Musca acknowledged that Queensland will never see the volume of transactions that Sydney and Melbourne enjoy, due to the simple fact that the state has fewer assets per capita.
But he said it had undoubtedly started the year in a strong position following $250 million of pub sales last year.